Cartrack, the listed supplier of fleet-management and stolen-vehicle-recovery services, has reduced dividend payments in order to settle its debt and to pursue growth opportunities, says CEO Zak Calisto. The company said on Tuesday it has changed its dividend policy, which had previously targeted a cover ratio of two to four times headline earnings per share (Heps) to a cover a ratio of two to six times Heps in the 2020 financial year. With a low dividend cover ratio, a company normally pays out a large proportion of its earnings as dividends, while a high dividend cover ratio implies that the company retains most of the earnings after paying out dividends.

Calisto said the company has prioritised paying off its R190m debt in about 18 months. With a debt-free balance sheet, the group will pursue growth opportunities, he said.Calisto said paying high dividends is not its priority, in light of the numerous growth prospects in an under penetrated market.“We do not want to be...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now